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Question : What is the approximate rate of simple interest per annum, if a sum of money becomes 6 times of itself in 15 years?

Option 1: 30%

Option 2: 2.5%

Option 3: 33.33%

Option 4: 25%


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: 33.33%


Solution : Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
Let the Principal amount be $P$ and the interest rate be $R$% per annum.
Simple interest = 6$P – P$ = 5$P$
So, 5$P$ = $\frac{PR × 15}{100}$
⇒ R = $\frac{500}{15}\approx$ 33.33%
Hence, the correct answer is 33.33%.

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